Leidos Inc. awarded $22.2M for custom computer programming, with a significant portion spent on labor
Contract Overview
Contract Amount: $22,215,462 ($22.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-03-16
End Date: 2015-06-15
Contract Duration: 821 days
Daily Burn Rate: $27.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: LABOR
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $22.2 million to LEIDOS, INC. for work described as: LABOR Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. Significant labor costs suggest a focus on specialized skills and personnel. 3. The contract duration of over two years indicates a substantial, ongoing need. 4. Awarded by the Department of Defense, highlighting critical national security or operational requirements. 5. The 'Not Competed' status warrants scrutiny regarding the justification for sole-source procurement. 6. The Cost Plus Fixed Fee structure may incentivize cost overruns if not closely monitored.
Value Assessment
Rating: fair
The total award value of $22.2 million for custom computer programming services over approximately two years appears within a reasonable range for complex IT projects. However, without specific details on the deliverables and the labor hours involved, a precise value-for-money assessment is challenging. The significant portion allocated to labor ($22.2M) suggests a high degree of specialized expertise was required. Benchmarking against similar custom programming contracts for the Department of Defense would provide a clearer picture of cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not openly competed. The justification for this approach is not provided in the data, but it typically implies that only one vendor possessed the necessary qualifications, security clearances, or unique capabilities to fulfill the requirement. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that could have resulted from a competitive bidding process.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other qualified businesses to secure government contracts.
Public Impact
The Department of Defense benefits from specialized custom computer programming services, likely supporting critical operational or intelligence functions. The services delivered are custom software development and integration, tailored to specific military needs. The geographic impact is primarily within Virginia, where the contractor is located, but the ultimate impact is on DoD operations nationwide. The contract supports a workforce skilled in advanced programming and IT solutions within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in inflated costs for taxpayers.
- Sole-source awards can limit opportunities for small and medium-sized businesses.
- Cost Plus Fixed Fee contracts can create incentives for increased spending if not managed tightly.
Positive Signals
- Award to a known entity (Leidos) may indicate a reliance on established expertise for critical functions.
- The contract addresses a specific need within the Department of Defense, suggesting alignment with strategic objectives.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. The market for such services within the federal government is substantial, with agencies constantly seeking tailored software solutions to meet unique operational and security requirements. Comparable spending benchmarks would involve analyzing other sole-source or competed contracts for similar custom development work within the DoD and other federal agencies, focusing on project scope and complexity.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to Leidos, Inc., a large prime contractor. There is no information provided on subcontracting plans. The sole-source nature of the award further suggests limited direct opportunities for small businesses to participate in this specific contract, unless they are subcontractors to Leidos.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures would be defined in the contract terms, including performance metrics and reporting requirements. Transparency is limited due to the sole-source nature and the proprietary aspects of custom software development. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense IT Services
- Custom Software Development Contracts
- Sole-Source IT Procurements
- Cost-Plus Contracts
Risk Flags
- Sole-source award lacks competitive justification.
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Limited transparency on specific deliverables and performance metrics.
Tags
it-services, custom-programming, department-of-defense, leidos-inc, definitive-contract, cost-plus-fixed-fee, sole-source, labor-intensive, virginia, defense-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.2 million to LEIDOS, INC.. LABOR
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.2 million.
What is the period of performance?
Start: 2013-03-16. End: 2015-06-15.
What specific custom computer programming services were provided under this contract?
The provided data indicates the contract was for 'Custom Computer Programming Services' (NAICS code 541511) awarded to Leidos, Inc. by the Department of Defense. While the specific nature of the programming is not detailed, this category typically encompasses designing, developing, and implementing software solutions tailored to unique client needs. This could include anything from developing new applications, modifying existing software, integrating disparate systems, or providing specialized programming for command and control, intelligence analysis, logistics, or other defense-specific functions. The significant labor component suggests complex development work requiring skilled programmers.
What is the justification for awarding this contract on a sole-source basis?
The data explicitly states the contract was 'NOT COMPETED' and awarded as a 'DEFINITIVE CONTRACT' under a sole-source arrangement. Federal procurement regulations generally require full and open competition. Sole-source awards are exceptions, typically justified when only one responsible source is available or capable of meeting the agency's needs. Common reasons include unique capabilities, proprietary technology, urgent and compelling needs where competition is impractical, or specific follow-on work to a previously competed effort where only the original contractor can provide the necessary integration or support. A formal justification document (e.g., a Justification and Approval, J&A) would normally be required and publicly available for such awards, detailing the specific rationale.
How does the Cost Plus Fixed Fee (CPFF) contract type potentially impact cost control?
A Cost Plus Fixed Fee (CPFF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. While the fixed fee provides some incentive for the contractor to control costs (as their profit is capped), the primary risk of cost overruns lies with the government. If the project scope expands or unforeseen difficulties arise, the government bears the increased cost. Effective oversight, clear scope definition, and robust change management are crucial to mitigate the risk of escalating costs under a CPFF arrangement. The government must diligently monitor expenditures to ensure they remain reasonable and allocable to the contract.
What is the historical spending pattern for custom computer programming services by the Department of Defense?
The provided data only details one specific contract ($22.2M to Leidos). To assess historical spending patterns for custom computer programming services by the Department of Defense (DoD), a broader analysis of federal procurement data would be necessary. This would involve querying databases like USASpending.gov or FPDS-NG for all contracts awarded under NAICS code 541511 (Custom Computer Programming Services) by the DoD over several fiscal years. Key metrics to examine would include total annual spending, the proportion of competed versus sole-source awards, average contract values, major awarding agencies within the DoD, and the primary contractors receiving these awards. This broader view would reveal trends, identify areas of significant investment, and highlight shifts in procurement strategies.
What is Leidos, Inc.'s track record with the Department of Defense for similar services?
The data shows Leidos, Inc. has a significant contract with the Department of Defense for custom computer programming. To fully assess their track record, one would need to examine their contract history with the DoD beyond this single award. This includes reviewing past performance evaluations, the types and values of previous contracts, their success in meeting deadlines and technical requirements, and any history of contract disputes or terminations. Leidos is a large, established government contractor known for providing a wide range of IT and engineering services, including to defense agencies. Their extensive experience suggests a generally strong capability, but a detailed review of specific past performance on similar custom programming projects would be necessary for a comprehensive assessment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1710 SAIC DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,215,462
Exercised Options: $22,215,462
Current Obligation: $22,215,462
Subaward Activity
Number of Subawards: 38
Total Subaward Amount: $8,060,260
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-03-16
Current End Date: 2015-06-15
Potential End Date: 2015-06-15 00:00:00
Last Modified: 2025-12-31
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)